The Impact of Labor Market Regulations on Economic Growth in Nigeria

Onyinyechi Nweke Ph.D

doi:10.56201/ijebm.vol.3.no10.2017.pg92.104

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The Impact of Labor Market Regulations on Economic Growth in Nigeria

Onyinyechi Nweke Ph.D

Abstract

This study examined the impact of labor market regulations on economic growth in Nigeria. The survey research design was used for this study. The population for this study involves National Union of Teachers which comprised of all 521 teachers in the eleven (11) public senior secondary schools in Port Harcourt Local Government Area of Rivers State. The Taro Yamane formula was used to determine a sample size of 135 respondents for the study. The instrument for data collection was a self-structured questionnaire and the test-retest method was adopted to establish the reliability of the instrument with a reliability coefficient of 0.87. The data were analyzed using descriptive statistics (mean and standard deviation) and Pearson Product Moment Correlation at a 0.05 level of significance. The findings revealed a strong and statistically significant relationship between minimum wage regulations and economic growth in Nigeria, indicating that wage policies can enhance workers’ income, productivity, and aggregate demand. Trade union activities were also found to have a significant positive effect on economic growth, reflecting their role in wage determination and labor relations. However, employment protection laws showed a weak and statistically insignificant relationship with economic growth, suggesting that job security regulations alone may not directly contribute to economic expansion. The study concludes that labor market regulations have mixed effects on economic growth in Nigeria and emphasizes the need for a balanced regulatory framework that protects workers while promoting productivity, labor market flexibility, and sustainable economic growth. Thus, it was recommended that appropriate policy reforms and effective institutional enforcement are therefore essential for maximizing the growth-enhancing potential of labor market regulations in Nigeria.

Keywords

Labor market regulationsminimum wagetrade unionsemployment protection lawsand economic growth.

References

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The Impact of Labor Market Regulations on Economic Growth in Nigeria

Abstract

Keywords

References

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